PFW professor breaks down impacts of interest rate hikes

The Federal Reserve hiked interest rates yet again on Wednesday in an effort to slow inflation, but how exactly does that work?

Zafar Nazarov, an associate economics professor at Purdue Fort Wayne, says the most recent rate hike of .75% is the fifth increase this year. He says he expects to see the Fed raise rates again in the coming months, explaining that high inflation is a result of too much money chasing too few goods.

Watch the story on ABC21.